Household income is a measure of the combined incomes of all people sharing a particular household or place of residence. It includes every form of income, such as salaries and wages, retirement income, near cash government transfers like food stamps, and investment gains. Household income is defined as the total gross income before taxes, received within a 12-month period by all members of a household above a specified age, which is 15 years and older according to the U.S. Census Bureau. Household income can be used as an indicator for the monetary well-being of a countrys citizens. Mean or median net household income, after taxes and mandatory contributions, are taken as indicators of standard of living, because they include only disposable income and acknowledge people sharing accommodation benefit from pooling at least some of their living costs.

Household income includes all income, taxable and nontaxable, of everyone who resided with you at any time during the tax year, including children and non-related individuals. It refers to individuals, including children, who lived in your home for any period during the year and who may or may not be related to you. Household income includes wages, salaries, self-employment earnings, Social Security benefits, pensions, retirement income, investment income, welfare payments, and income from other sources.

The median household income is a commonly used measure of household income. It is the income level that separates the highest 50% of households from the lowest 50% . Median household income is based on the distribution of the total number of households and families, including those with no income. The Census Bureau notes that the median income is based on individuals 15 years old and over in the household, whether they are related to the householder or not.

In summary, household income is the total gross income before taxes, received within a 12-month period by all members of a household above a specified age. It includes every form of income, such as salaries and wages, retirement income, near cash government transfers like food stamps, and investment gains. Median household income is a commonly used measure of household income, and it is based on the distribution of the total number of households and families, including those with no income.